The five times World Cup winners dominated the round-of-16 game on Monday, with the encounter all but over at half-time after two goals, from Juan and Luis Fabiano, inside four first-half minutes put Brazil 2-0 up.
Robinho added a much deserved third on the hour to set up a quarter-final with the Netherlands on July 2.
"We have to get better in every sense each day,” said head coach Dunga after the game.
“It was a beautiful match because Chile play. [Chile are] a tough team to defend [against]. But Brazil were balanced and knew how to take [on] the opportunities.
“You have to score first in the World Cup because the match opens up. I was happy with the dedication of our players.
"Chile is a fast team, and we needed players like Ramires and Daniel Alves to match that. I don't know if I am going to use Ramires against Holland because I plan for the next game only.
"I give [the Brazil players] freedom to talk and say what they are feeling in the pitch. As the marking was tough in the middle, it was easier to put speed in the wings. Kaka and Robinho moved well and we had good opportunities like that.
"I think the quality of our players makes it easy. This group was built in three and a half years, so at times just a look or a quick word is enough to change something. I'm very happy to work with these kind of players.
"This match had the value of three and a half years. The pressure and adrenaline rises each day".
With a date with Holland lined up as the next hurdle, Dunga can recall back to the France 1998 World Cup semi-final where Dunga’s Brazil defeated the Netherlands on penalties.
"From every match in the World Cup comes experience. It's a different situation from 1998. Holland maintain the tradition of high quality players, similar to the South-American teams. They don't just stay back and don't only [play] the long ball.
"Holland are tough. They have a lot of technical quality, similar to the South-American [style of play]".
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How will the tournament go? Check out Castrol Football's 2010 FIFA World Cup Tournament Predictor.